FedEx Corporation (FDX)
Working capital turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 87,926,000 | 87,815,000 | 87,393,000 | 87,591,000 | 87,693,000 | 87,514,000 | 87,945,000 | 88,594,000 | 90,155,000 | 92,619,000 | 94,091,000 | 94,751,000 | 93,512,000 | 91,683,000 | 89,552,000 | 86,641,000 | 83,959,000 | 78,752,000 | 74,729,000 | 71,490,000 |
| Total current assets | US$ in thousands | 18,424,000 | 17,214,000 | 17,721,000 | 18,094,000 | 18,207,000 | 17,424,000 | 19,117,000 | 18,887,000 | 18,577,000 | 17,944,000 | 18,217,000 | 19,606,000 | 20,365,000 | 19,466,000 | 20,747,000 | 19,546,000 | 20,580,000 | 21,710,000 | 21,265,000 | 18,903,000 |
| Total current liabilities | US$ in thousands | 15,435,000 | 13,896,000 | 14,392,000 | 14,111,000 | 13,355,000 | 13,308,000 | 14,248,000 | 13,811,000 | 13,553,000 | 13,580,000 | 14,039,000 | 13,765,000 | 14,274,000 | 13,990,000 | 13,884,000 | 12,910,000 | 13,660,000 | 13,566,000 | 12,115,000 | 11,195,000 |
| Working capital turnover | 29.42 | 26.47 | 26.25 | 21.99 | 18.07 | 21.26 | 18.06 | 17.45 | 17.94 | 21.22 | 22.52 | 16.22 | 15.35 | 16.74 | 13.05 | 13.06 | 12.13 | 9.67 | 8.17 | 9.27 |
May 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $87,926,000K ÷ ($18,424,000K – $15,435,000K)
= 29.42
The analysis of FedEx Corporation's working capital turnover over the specified period reveals notable fluctuations and a general upward trend in recent years. Initially, the ratio was approximately 9.27 as of August 31, 2020, indicating a relatively conservative utilization of working capital relative to net sales. This ratio dipped to 8.17 on November 30, 2020, before rebounding to 9.67 by February 28, 2021, suggesting some instability in operational efficiency during this period.
From May 31, 2021, onward, the working capital turnover exhibited a steady increase, reaching 12.13 and 13.06 in subsequent periods. This positive trajectory continued into early 2022, with ratios of 16.74 in February and 15.35 in May, and further, it peaked at 22.52 on November 30, 2022. The subsequent periods showed some variability but generally maintained elevated levels, with ratios of 21.22 in February 2023 and fluctuating between approximately 17.94 and 18.07 up to November 2023.
A significant upward shift is observed starting from February 29, 2024, with the ratio reaching 21.26, eventually escalating to an all-time high of 29.42 by May 31, 2025. This marked increase indicates a substantial improvement in the efficiency with which FedEx utilizes its working capital to generate sales. The ratios suggest enhanced operational effectiveness, possibly driven by better inventory management, receivables collection, or overall process efficiency.
In summary, the sizeable rise in working capital turnover ratios over recent periods underscores a trend toward more efficient utilization of working capital resources in generating sales. The progression reflects an underlying improvement in operational performance and asset management, aligning with strategies aimed at optimizing liquidity and operational efficiency.